By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Averaging down a losing trade rarely feels like a mistake while it is happening. It feels like conviction: the analysis was sound, the price is now better, and adding is what a confident trader would do. The difficulty is that the same feeling is present…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Prop firm challenge psychology is usually discussed as a matter of nerve: stay calm, follow the rules, do not overtrade. The advice is sound as far as it goes, but it skips the part that makes a challenge different from ordinary trading. A challenge adds…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Why traders move their stop loss is a question with an unusually well-documented answer, and the documentation almost never reaches the trader, who is generally told it is a discipline problem. The reasoning that arrives at the moment of moving it is worth attending to,…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The loss aversion ego trading account problem is usually described as two forces acting on one balance. It is more accurate, and more useful, to treat it as a single compound with a specific signature. The loss aversion ego trading account compound has…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Trading addiction psychology sits in an awkward place, and the awkwardness is worth naming before anything else. The topic attracts two kinds of writing. One treats every enthusiastic trader as an addict, which is both alarming and useless. The other dismisses the category…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Ego in trading psychology has exactly one piece of standard advice attached to it, and the advice is: get rid of it. Leave your ego at the door. Trade without ego. The market does not care about your ego. It appears in every…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer| thewealthmirror.com Why a big trading loss feels personal is a question with a specific answer, and the answer is easier to see across six hours than across six months. What follows is a reconstruction of a single session, built to show why a big trading…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Overtrading psychology is usually discussed as though overtrading were one condition with one cause, which is why the advice about it works for roughly a fifth of the people who follow it. Three traders take forty entries in a week where their plan called…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com Repeating trading mistakes produce a particular kind of private conclusion, and it usually arrives around the third or fourth time. The explanation changes each time. The first is bad luck. The second is carelessness. By the fourth, the explanation has quietly changed shape: it is…
Understanding the psychology behind revenge trading — and the only way out of the loop.
